NEW YORK -- Airbnb says New York City has reversed a $2,400 fine for a man who rented out a room in his apartment through the vacation rentals site.

Nigel Warren was fined in May. He and his landlord had appealed the ruling. This week the city's Environmental Control Board took their side, agreeing that short-term rentals are permitted as long as a permanent occupant is present. Warren was not in the apartment when the room was rented, but his roommate was.

In a blog post late Friday, Airbnb said the episode "highlights how complicated the New York law is." The San Francisco startup says it will continue to "work to clarify the law and ensure New Yorkers can share their homes" with travellers from around the world.